The GGCC has joined many businesses, Chambers of Commerce, and business associations around the State to oppose misguided legislation, HB1515. This legislation, titled “Sales and Use Tax – Rate Reduction and Services,” is an attempt to fund critical MD priorities through a massive $2.9 billion tax increase on Maryland residents and businesses.
While HB 1515 proposes lowering the state sales tax rate from 6% to 5%, it would simultaneously expand the sales tax to a wide variety of everyday professional and personal services that have never been taxed before, including, but not limited to:
- Accounting and financial planning services
- Child care services
- Legal and appraisal services
- Real estate services
- Shipping and delivery services
- Transportation, towing and parking services
- Auto mechanic services
- Grocery delivery, gym memberships, personal training services
- Home repair and improvement services
- Home cleaning and mold remediation services
- Landscaping and tree removal services
- Dry cleaning and laundry services
- Nail salon, barber shop and beauty salon services
- Veterinary and pet grooming services
- Advertising, public relations, printing and media streaming services
- Funeral services
Only five other states in the country broadly taxes services in this manner.
GGCC recognizes that this tax increase is proposed to cover funding gaps created by the costly legislation and unfunded policy mandates passed by the Maryland legislature in recent years. However, we believe that further taxing Marylanders and placing undue additional burden on our businesses, will only further decrease Maryland’s ability to remain competitive in a difficult marketplace. Rather, we believe our legislative bodies should focus on building a climate attractive to new business in Maryland, thereby creating an economy that doesn’t rely on placing additional tax burdens on our taxpayers.
Many of our GGCC members are writing to their representatives in the MD House and Senate, and will be speaking or submitting testimony to the House Ways & Means Committee, to express their concern about this massive tax increase. Our businesses in Maryland, and our hardworking citizens, deserve a more balanced approach to funding our programs while still striving for a strong economic outlook.
Because this legislation will destroy our state’s competitiveness, unduly burden our small business owners, and stifle the economy, the Gaithersburg-Germantown Chamber of Commerce respectfully requests our representatives to oppose HB1515.
- Read our complete submission to the MD House Ways & Means Committee here.
- Please reach out to YOUR MD Delegates and Senator to inform them about how this legislation would harm your business.